What is AD Code and why is it important?

For starting an Import and Export business in India, you must have two registrations as per Government regulations. One is IEC Registration, and the other is AD Code Registration. Without these two registrations, you cannot start an import-export business in India. The AD Code is required for customs clearance of your Goods. The purpose of the AD Code is to ensure that foreign currency transactions in an importer-exporter's current account are from a legal channel or not.

AD Code registration at any single port work for custom clearance of export or Import of Goods across India. AD Code is provided by the bank where you hold the business or current account. The bank which is authorized to grant AD Code must deal with foreign currency. Registering the AD Code at the port where goods are sent for custom clearance is mandatory. Without port registration of the AD Code, the shipping bill number or bill of entry number will not be generated, which is a must for the export and import of goods.